The present invention relates to the new and distinct Variegated Butterfly Agave plant, Agave ‘Desert Diamond’ discovered by Hans A. Hansen at a nursery in Zeeland, Mich., USA as an uninduced whole-plant mutation in a tissue cultured crop of Agave potatorum ‘Kissho Kan’ (not patented) the summer of 2005. The new plant has been successfully asexually propagated both by division and by tissue culture at a nursery in Zeeland, Mich. Both methods of asexual propagation systems have been found produce stable and identical plants that maintain the unique characteristics of the original plant.